Foley to ask banks to reveal TARP money

Newly minted State Sen. Brian X. Foley, D-Brookhaven, announced today that as chairman of the Senate’s Banking Committee, he will be sending surveys to the 10 banks that have received federal TARP funds requesting to know how the money has been spent.

Foley, at a press conference with State Sen. Craig Johnson, D-Port Washington, and Sen. Majority Leader Malcolm Smith, D-St. Albans, in Nassau County, said at least some of the money should be ed to stop the growing number of home foreclosures throughout the state.

Foley said in addition to sending surveys to the banks, he will also be holding committee hearings, inviting Attorney General Andrew Cuomo and state banking superintendent Richard Neiman to testify.

“We need to do everything we can to stem the tide of foreclosures,” Foley said. “The surveys are just the first step.”

The surveys will include details of bank activities and data collected. He said although they will be voluntary, he has talked with banking industry officials who agreed to fill them out and send them to the state.

Foreclosures are especially a problem in Suffolk County, which last year had the second highest number in the entire state — 6,324 or about 13 percent of all foreclosures statewide.

“The foreclosure crisis is not easy to address or solve,” Foley said. “This begins the process.”

He said although the U.S. Congress has also had trouble finding out how the banks are spending the TARP money, now is not the time to stop trying.

“We have to succeed,” Foley said. “There needs to be honesty, more transparency.”

Foley was joined by Johnson, who announced legislation to create a statewide sex offender residency law, and Smith, who was on Long Island as part of a state tour.

“I’m here to get a sense of what (local officials) feel,” Smith said, noting that the state is facing a $15 billion deficit for next year and a $1.7 billion hole in this year’s budget.

Nassau County is also facing a $100 million deficit while Suffolk’s deficit is estimated at $115 million.